Entergy 2005 Annual Report Download - page 30

the industry median while we continue to set the
median cost as an aggressive target for our
Northeast fleet. We are pursuing a variety of
productivity initiatives under our multi-year
improvement plan to continue to drive cost
savings and higher generation across our nuclear
business. In spite of increases in security, fuel,
and benefit costs, we still see opportunities to
lower nuclear production costs in the future.
With the skill and experience of our nuclear
team, we are confident we can be the best-in-class
at generating clean, safe, and affordable nuclear
power. That’s one reason we are very pleased by
the passage of the Energy Policy Act of 2005.
The Act contains significant incentives for the
construction and operation of new nuclear
sites. We believe it offers substantial opportunities
for Entergy.
In September 2005, NuStart – a consortium of
12 industry leaders including Entergy – announced
it had selected Grand Gulf to be one of two sites
to pursue a Construction and Operating License, or
COL, under the Energy Policy Act. At the same
time, we announced that we will also pursue a COL
for our River Bend site as well as an Early Site
Permit, or ESP, for Grand Gulf. We look for
COLs to be issued in 2007 and construction could
begin in 2010 if we decide to pursue building a
new plant. COL and ESP efforts preserve
Entergy’s opportunity to participate in the next
generation of nuclear development.
In the near term, we continue to evaluate
opportunities to broaden our nuclear business
portfolio such as asset acquisitions, operating
agreements, and other service contracts. We are
strong believers in the future of nuclear power and
when we see opportunities with strong potential
that are fairly priced, we will act.
NUCLEAR WEATHERS THE
STORM:SAFE AND SECURE.
On August 27, when a hurricane warning was issued in
St. Charles Parish, Louisiana, the Waterford 3 nuclear team
was ready. Core personnel were onsite. Supplies were on
hand to enable staff to live and work at the plant for several
days. Following NRC guidelines, our nuclear team declared
an unusual event, notifying the Commission that the unit
would shut down, which it did the next day.
Waterford 3 was undamaged by the storm, but lost
offsite power and land-line communications. Emergency
generators powered critical safety systems and contact
with the NRC was maintained via satellite telephones. A
week later, communications and offsite power were restored.
Offsite evacuation routes were open and emergency sirens
operational. Following regulatory approval, Waterford 3
would be ready to generate power.
Two nearby Entergy nuclear units – Grand Gulf near
Vicksburg, Mississippi, and River Bend near Baton Rouge,
Louisiana – were unaffected by Katrina. They subsequently
operated at reduced power due to extensive damage to the
area’s transmission and distribution infrastructure.
The safe and secure operation of our nuclear plants
throughout the upheaval caused by Hurricane Katrina is
a testimony to our exceptional employees. They stand
ready to safely generate clean and affordable power for our
customers, rain or shine.
“In some respects, Entergy
We continue to see opportunities to lower
production costs in our nuclear fleet and are
pursuing productivity improvements through our
multi-year improvement plan.
Nuclear production costs
97-05; $/MWh
40
30
20
10
0
Acquisitions*
33
17 16
19
Northeast Fleet
* Entergy Nuclear’s northeast fleet production costs prior to the acquisition date based upon published reports
Southern Fleet
97 98 99 00 01 02 03 04 05